Information regarding Officers Defense Service voluntary fund

Lucille Hart, administrator of the Officers Defense Service, sent the following letter to American Maritime Officers National President Tom Bethel. The ODS does not include funds from the AMO treasury or other union assets.

This letter responds to your request for financial information regarding the Officers Defense Service (the "ODS").

In accordance with the policy adopted by the Committee of the ODS effective July 1, 2007, we are providing you with a copy of the ODS report on assets and liabilities for the year ended December 31, 2006. In addition, during 2006, the ODS paid a total of $133,850 in legal defense services grants on behalf of four participants.

Please contact us if you have any questions.

(s) Lucille Hart, administrator

Balance Sheets

December 31:

ASSETS 2006 2005

Cash and cash equivalents $201,156 $132,237

Investments 600,000 720,000

Contributions receivable 5,906 500

Accrued interest receivable 14,315 880

$821,377 $853,617

LIABILITIES AND FUND BALANCE 2006 2005

Liabilities:

Accrued expenses $26,800 $6,626

Income taxes payable 4,578 2,481

Deferred income taxes payable 3,871

$35,249 $9,087

Fund Balance $786,128 $844,530

$821,377 $853,617

The following information was provided to American Maritime Officers by Lucille Hart, administrator, Officers Defense Service (ODS).

Committee members: The members of the ODS committee are public-spirited citizens who have no affiliation with American Maritime Officers. Appointments to committee vacancies are made by the remaining members of the committee.

Introduction: The Officers Defense Service is a voluntary legal defense fund, which was established in 1973 by action of what is now the American Maritime Officers union. The ODS does not include funds from the AMO treasury or other union assets.

The purpose of the ODS is to make available funds for members and retired members of maritime unions who are charged with criminal offenses or who are defendants in civil actions arising out of alleged acts or omission in their capacity as members, officers or representatives of such unions, or who are the subject of judicial or legislative investigation.

The regulations of the ODS provide that funds or grants may be made available for legal representation and defense, investigator services, expert witnesses, accountants and other professional services necessary to establish a legal defense for eligible members.

Eligibility: Contributions to the ODS by AMO members are voluntary and may be made by authorized deduction from a member's vacation pay or pension benefits or by personal check. There is no set dollar amount of contribution.

Members may contribute as much and as often as they want. However, the committee will not consider any grant request by a member ho did not contribute to the ODS before such member first became aware of the investigation, proceeding, suit or action for which the grant is being sought.

If you would like to contribute to the ODS, you may contact the AMO Vacation Plan for an authorization to deduct the contributions from your vacation pay, or contact your AMO representative to make a contribution by check and receive a receipt for your contribution.

How to apply for an ODS grant: All requests for financial assistance must be made by the eligible member in writing addressed to:

Committee of the Officers Defense Service
C/O Benserco, Inc.
2185 Lemoine Ave.
Fort Lee, NJ 07024

The request must:

Fully describe the investigation, suit or action in which the member is involved and for which a grant is being requested
State the specific purposes for which the grant is sought, for example: for legal defense, expert witnesses, investigator services
Identify the name, address, telephone number, etc. of the attorney or law firm who represents or will represent the member
Provide an itemized bill of legal services provided or a good faith estimate of the anticipated cost of the services
Include any documentation in connection with the matter for which a grant is being requested, such as a copy of a retainer agreement with legal counsel, subpoena or complaint.

Amount of Grant: All requests for grants are reviewed by the ODS committee members in conjunction with ODS counsel. The committee may contact a member if additional information is required to make a determination on a grant request. The committee has discretion to approve and deny grants and, if approved, to determine the amount of a grant after considering all facts and circumstances involved in the grant request and the financial condition of the ODS. Members are advised in writing of the committee's determination.

Questions: The ODS committee has retained Benserco, Inc., as a third-party administrator to perform the administrative services for the ODS. If you have questions regarding the ODS, call (201) 592-6800 or write to:

Officers Defense Service
C/O Benserco, Inc.
2185 Lemoine Ave.
Fort Lee, NJ 07024